Facts

Clothing costing $100 or less per itemSport or recreational equipment, $50 or less per itemComputers, $3,500 or less per itemComputer supplies, $250 or less per itemSchool supplies, $100 or less per itemSchool instructional materials, $300 or less per item

Come 2014, shoppers will no longer save on sales tax during the state's popular tax-free weekend, a three-day stretch in early August when shoppers don't have to pay sales tax on items such as clothing, computers and cleats.

Gov. Pat McCrory signed a tax reform plan into law on July 23 that eliminates the sales tax holiday next year. North Carolina, one of 17 states that hold tax-free weekends, had its first holiday in 2002. Since then, it's been popular with families and teachers, who often use it for back-to-school shopping. Some say losing the holiday will mean fewer savings for shoppers and the possible loss of sales to other states.

The tax-free list, put out each year by the state Department of Revenue, includes clothing, sports equipment, computers and school supplies. There's a price limit for each category – the discount only applies to clothes under $100 or school supplies less than $100, for example. As long as shoppers follow those limits, they won't have to pay the 7 percent sales tax in New Hanover County or the 6.75 percent sales tax in Pender and Brunswick counties.

Trading tax cuts

All these savings come at a cost to the state. Last year's holiday cost North Carolina an estimated $13.3 million, said Trevor Johnson, spokesman for the Department of Revenue. Supporters of the new tax plan say that it will be more beneficial than a sales tax holiday's one-time savings.

"Our plan reduces the state income tax significantly, which means everyone will have more money in their pockets day to day," said Amy Auth, spokeswoman for Senate majority leader Phil Berger, R-Rockingham.

But some who supported the tax reform package didn't support elimination of the tax-free weekend. Take Andy Ellen, president of the North Carolina Retail Merchants Association. He called the tax reform legislation an overall "improvement in the tax climate in North Carolina." But getting rid of the sales tax holiday might move sales out of the state or online, he said.

Other shopping options

Wilmington shoppers, for example, might start driving to the Tanger Factory Outlet Centers in Myrtle Beach to take advantage of South Carolina's tax-free weekend,

Ellen said. This year the states' tax-free weekends coincide.

Shoppers might also turn to their computers.

"For the retailer, the guy that sells shoes – this is the only weekend of the entire year that he's on a level playing field with the Amazon.coms," Ellen said. "North Carolina's going to lose all those purchases."

At stores such as Target, on New Centre Drive in Wilmington, business typically picks up significantly over tax-free weekends, said manager Erica Rodgers. This year, the store is expecting a 6 percent uptick in sales over the weekend, she said.

If history holds true, Target's electronics department will see the biggest boom. Computers are exempt from sales tax if they cost less than $3,500 – which includes "pretty much anything back in our electronics department," Rodgers said.

The elimination of tax-free weekend will mean Target's sales numbers in August 2014 will be much lower than they were this year, Rodgers said.

"In terms of (the corporate level) adjusting our forecast, I definitely think this will impact our business, because they'll be expecting us to do the same amount as last year," she said.

The StarNews asked readers on Facebook if they'd be affected by the elimination of the sales tax holiday. Many said they wouldn't, saying that they currently avoid stores during that weekend. But several said they'd feel the loss. Reader Adele Bomhan said that her mother-in-law, a teacher, used the weekend to stock up on supplies for her students.

"The teachers pay a lot out of pocket for their classrooms, so the little they save during the tax-free weekend really helps," Bomhan wrote. "Will the state pick up this money?"

<p>This weekend's sales tax holiday marks the last hurrah for some bargain-hunting North Carolinians. </p><p>Come 2014, shoppers will no longer save on sales tax during the state's popular tax-free weekend, a three-day stretch in early August when shoppers don't have to pay sales tax on items such as clothing, computers and cleats.</p><p>Gov. Pat McCrory signed a tax reform plan into law on July 23 that eliminates the sales tax holiday next year. North Carolina, one of 17 states that hold tax-free weekends, had its first holiday in 2002. Since then, it's been popular with families and teachers, who often use it for back-to-school shopping. Some say losing the holiday will mean fewer savings for shoppers and the possible loss of sales to other states. </p><p>The tax-free list, put out each year by the state Department of Revenue, includes clothing, sports equipment, computers and school supplies. There's a price limit for each category – the discount only applies to clothes under $100 or school supplies less than $100, for example. As long as shoppers follow those limits, they won't have to pay the 7 percent sales tax in New Hanover County or the 6.75 percent sales tax in Pender and Brunswick counties.</p><p><b>Trading tax cuts </b></p><p>All these savings come at a cost to the state. Last year's holiday cost North Carolina an estimated $13.3 million, said Trevor Johnson, spokesman for the Department of Revenue. Supporters of the new tax plan say that it will be more beneficial than a sales tax holiday's one-time savings.</p><p>"Our plan reduces the state income tax significantly, which means everyone will have more money in their pockets day to day," said Amy Auth, spokeswoman for Senate majority leader Phil Berger, R-Rockingham.</p><p>But some who supported the tax reform package didn't support elimination of the tax-free weekend. Take Andy Ellen, president of the North Carolina Retail Merchants Association. He called the tax reform legislation an overall "improvement in the tax climate in North Carolina." But getting rid of the sales tax holiday might move sales out of the state or online, he said.</p><p><b>Other shopping options</b></p><p>Wilmington shoppers, for example, might start driving to the Tanger Factory Outlet Centers in Myrtle Beach to take advantage of South Carolina's tax-free weekend,</p><p>Ellen said. This year the states' tax-free weekends coincide. </p><p>Shoppers might also turn to their computers.</p><p>"For the retailer, the guy that sells shoes – this is the only weekend of the entire year that he's on a level playing field with the Amazon.coms," Ellen said. "North Carolina's going to lose all those purchases."</p><p>At stores such as Target, on New Centre Drive in Wilmington, business typically picks up significantly over tax-free weekends, said manager Erica Rodgers. This year, the store is expecting a 6 percent uptick in sales over the weekend, she said.</p><p>If history holds true, Target's electronics department will see the biggest boom. Computers are exempt from sales tax if they cost less than $3,500 – which includes "pretty much anything back in our electronics department," Rodgers said. </p><p>The elimination of tax-free weekend will mean Target's sales numbers in August 2014 will be much lower than they were this year, Rodgers said. </p><p>"In terms of (the corporate level) adjusting our forecast, I definitely think this will impact our business, because they'll be expecting us to do the same amount as last year," she said. </p><p>The StarNews asked readers on <a href="http://www.starnewsonline.com/facebook"><b>Facebook</b></a> if they'd be affected by the elimination of the sales tax holiday. Many said they wouldn't, saying that they currently avoid stores during that weekend. But several said they'd feel the loss. Reader Adele Bomhan said that her mother-in-law, a teacher, used the weekend to stock up on supplies for her students.</p><p>"The teachers pay a lot out of pocket for their classrooms, so the little they save during the tax-free weekend really helps," Bomhan wrote. "Will the state pick up this money?"</p><p>Pressley Baird: 343-2328</p><p><a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @PressleyBaird</p>